What is the Indian Clearing Corporation Limited (ICCL)?

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ICCL is a subsidiary of the BSE that serves customers in India by carrying out clearing, settlement, and collateral management functions for the various segments of the BSE. 

Key Functions of ICCL

1. Clearing and Settlement of Trades

After a trade is executed, ICCL determines the required clearing obligations and carries out the settlement of funds and securities according to the applicable settlement cycle. This helps ensure that buyers receive securities and sellers receive funds within the prescribed timelines.

2. Risk Management

ICCL plays an important role in risk management during the clearing and settlement process. It continuously monitors exposures and applies its risk-management framework to manage risks associated with market transactions.

3. Margin Collection

ICCL collects applicable margins from clearing members based on their positions and the relevant risk parameters. This process helps mitigate potential settlement risks and maintains market stability.

4. Clearing and Settlement of Derivatives

ICCL provides clearing and settlement services for eligible derivatives transactions, including applicable Futures and Options (F&O) segments. It facilitates the smooth processing and settlement of derivative contracts traded on the exchange.